Property rejected for rezoning sells for $22 million

Two parcels at the edge of the River North Arts District that were the subject of a rejected rezoning request last year have sold.

Chicago-based Golub & Co. and Denver-based Formativ — which own 13 acres in the Denargo Market area — said Monday they had added 3275 and 3315 Denargo St., which total 3.82 acres.

The purchase price was $21.6 million, according to the Henry Group brokers Patrick Henry and Boston Weir, who represented the seller.

The parcels are home to a vacant 32,751-square-foot warehouse and a 62,000-square-foot Lodo Self Storage & Moving Center facility, according to the Henry Group.

“This acquisition in one of Denver’s most sought-after submarkets further demonstrates our commitment to Denargo Market and the long-term vitality of this neighborhood,” Golub vice president of acquisitions David Smith said.

In 2020, Texas-based Cypress Real Estate Advisors, which was under contract to buy the site, asked the city to rezone it. The firm wanted to build two 12-story buildings with 650 combined apartments.

But the City Council voted 7-6 that May to reject the rezoning request. Cypress voluntarily agreed to restrict 10% of the units to those making up to 80% of the area median income. But several council members who voted against the rezoning said that amount of “affordable housing” was not enough.

“I do not believe it is consistent with our planned goals, especially around equity and housing and health and safety and connectivity,” Councilwoman Candi Cdebaca, who represents the district, said at the May 2020 meeting.

The properties were sold by Aftco LLC and Lodo Self Storage LLC. The site was listed for $24 million.

Henry — who also was involved in last month’s sale of an adjacent parcel — told Businessden that, after the rezoning request was rejected, Cypress opted not to move forward with purchasing the site.

Golub and Formativ purchased the 13 acres they already own in Denargo Market in 2019, paying $86 million.

The City Council rezoned the land in May at the firm’s request, with Cdebaca the sole “no” vote.

As part of a corollary development agreement, which was also approved 12-1, Golub and Formative committed to restricting 15% of the residential units built on the 13 acres, whether for rent or for sale, to those making less than the area median income.

Golub and Formativ said a third party will continue to operate the self-storage business. The 2020 rejection of the rezoning request does not preclude Golub and Formativ from seeking to have the site rezoned in the future.